Confidence
By Ryan Schuette | 05/14/2012
A fresh round of concerns that Greece may leave the euro zone sent U.S. stock markets into a dizzying tumble Monday. After some lift in recent weeks, the Dow Jones Industrial Average fell 125.25 points to close by end of day at 12,695, along with shares for the nation’s four largest lenders. The deal reportedly involves a Syriza, a leftwing bloc opposed to further austerity measures that may parlay slashes to Greek social services for $170 billion in bailout funds under a package jointly agreed-to by the European Union and International Monetary Fund.
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By Ryan Schuette | 05/10/2012
Home prices rose by a seasonally adjusted 0.2 percent in February, the first increase since March last year, according to Lender Processing Services. The analytics and data provider said that several other indicators posted solid gains in February. Home prices averaged $195,000, the same as seen in June 2003. LPS also projected a 0.3 percent increase in national home prices on the whole come March. Of 26 metro areas surveyed by LPS and the Labor Department, only cities in California – Los Angeles, San Diego, and San Francisco – observed price declines.
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By Krista Franks Brock | 05/09/2012
Noting some recent strengthening in demand in the housing market, Capital Economics suggests housing prices "are close to, or already through, their trough," and recovery will continue through the coming months. While acknowledging the decline in home sales in March, Capital Economics’ analysts remain optimistic due to the recent increases in pending home sales. The National Association of Realtors' latest Pending Home Sales Index in March reached 101.4, its highest level since April 2010. Recent data on mortgage applications also point toward a strengthening market.
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By Mark Lieberman, Five Star Institute Economist | 05/04/2012
The nation added 115,000 jobs in April, far below expectations and a drop from March’s revised payroll growth of 154,000, the Bureau of Labor Statistics reported Friday. The closely watched unemployment rate dipped again to 8.1 percent – its lowest level since January 2009 (7.8 percent) when President Obama took office – a function of a sharp drop in the nation’s labor force. Payroll gains for February and March were revised, adding 19,000 to the February numbers and 34,000 to March. The average workweek remained at 34.5 hours.
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By Ryan Schuette | 05/01/2012
Shares swelled for the nation’s four largest lenders Tuesday, with analysts crediting a rise in construction spending over March for a climb by the stock market to levels not seen in four years. The Dow Jones Industrial Average cleared an important psychological hurdle by rising 65 points to 13,279, the highest in four years. Media outlets and analysts attributed the boon to a leap ahead in confidence for the Chinese and U.S. economies, with a slight rise in construction spending over March responsible for the latter. Construction spending arrived at $171.2 billion.
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By Mark Lieberman, Five Star Institute Economist | 03/30/2012
Consumer spending grew 0.8 percent in February, the Bureau of Economic Analysis reported Friday, fueling expectations for a stronger first quarter economic surge than economists have forecast. Personal spending grew faster than the 0.6 percent market consensus. Personal income, BEA reported, grew just 0.2 percent in February, half the rate of growth expected by economists. In dollars, spending increased $86.0 billion in February while income – from all sources – grew $28.2 billion. Spending for the first two months of the quarter averaged $10.9 billion.
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By Mark Lieberman, Five Star Institute Economist | 03/19/2012
Builder confidence was flat in March, matching a downwardly revised February index of 28, the first time in six months the index has not increased, the National Association of Home Builders reported Monday. The builder assessment of present home sales conditions actually dipped in March, falling to 29, the first decline since last September. The outlook for home sales in the next six months rose to 36 – the highest level since June 2007 - from 34 in February. Buyer traffic was flat in March at 22. The drop in the index in the West census region was precipitous.
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By Ryan Schuette | 03/07/2012
More Americans feel confident about their household finances, the housing recovery, and the prospect of an economic upturn, Fannie Mae said Wednesday. The mortgage giant drew on poll data from some 1,000 respondents to sketch a blend of guardedness and hopefulness in a National Housing Report. Thirty-five percent of Americans now believe the economy is on the right track, an increase from 19 percent in November, compared with 57 percent who still feel damp about the state of recovery. Fewer respondents fielded layoff concerns.
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By Ryan Schuette | 03/06/2012
A steady pace for home prices and sales signals housing recovery, but a disorderly default by any of the euro zone states overseas could choke affordability according to Capital Economics analysts.
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By Ryan Schuette | 02/28/2012
Home prices reached fourth-quarter lows not seen since 2002, with the Standard & Poor’s/Case-Shiller Index yielding 3.8 percent in declines for December last year. The index found that prices fell 4 percent year-over-year, alongside 1.1 percent in month-over-month declines for 10- and 20-city composite measures. Eighteen of 20 metropolitan areas monitored by S&P bore the brunt of monthly price declines, with figures up 0.2 percent and 0.8 percent for only Miami and Phoenix, respectively. Atlanta slouched into the negatives at 12.8 percent. Detroit offered the only positive annual return at 0.5 percent.
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